US Treasury yields steady as trade tensions escalate

US Treasury yields stabilized during Thursday's trading, as trade tensions escalated after President Donald Trump announced new tariffs on Brazil and copper imports, in a move that reflects further escalation in the Washington-led trade war.

The two-year treasury yield, which is more sensitive to monetary policy changes, stabilized at 3.866% at 4:03 pm Makkah time. The 10-year treasury yield also rose one basis point to 4.352%, while the yield on the 30-year note remained steady at 4.877%.

Trump announced last night 50% tariffs on Brazil, effective Aug. 1, in addition to a 50% tariff on copper imports, based on a security assessment prepared by the White House regarding risks associated with supply chains.

Meanwhile, Trump has escalated his trade rhetoric, with his administration sending new formal notifications regarding tariffs imposed on seven additional countries, effective in August.